Brief
HP Partner MPS cost of printing
What’s in the cost per page?
Most companies do not understand the total cost of general
office printing. Many factors contribute to the cost of producing
a printed page, including both hard costs and related overhead
costs. You need to take all costs into consideration when looking
at the total costs of printer ownership.
As youcost
work toward
better managing your
Total
of printer
print environment, it is important that you
ownership
recognize every factor contributing to the total
cost of general office printing—and exactly
which costs are taken Hardware
into consideration in
acquisition
determining the cost per
page charged when
24.2%
receiving managed print services (MPS).
Supplies
44.3%
Break/fix
repair
13.9%
Why cost per page?
Related
Estimated costs of printing
1
In this illustration, the estimated total cost of
printing is derived from HP internal calculations
and more than 25 years of experience delivering
managed print services.
One of the benefits of MPS support
is that it helps
12.1%
organizations understand the
true cost of
printing while delivering excellent services
for their print devices. HP
breaks down the
Maintenance
5.4%expected over
acquisition and supportkits
costs
the lifetime of a device, and establishes
a page rate that takes all these costs into
consideration.
The responsibility of maintaining the device in
optimal working condition, as well as providing
quality supplies, is one we embrace as an MPS
provider. We commit to deliver on the cost
per page contractually, and must rely on best
business practices to maintain a high level of
service at a low cost of conducting business.
We are continually looking at our processes
and searching for ways to improve upon them,
keeping the customer experience foremost
in our review process. As a result, we strive
to make the best possible choices affecting
service delivery, support provision, supplies
quality, and consultation—while providing
a unique customer experience—in order
to remain your service provider of choice.
We accept all the risk and are committed to
providing an outstanding service experience.
Total cost of printing
At HP, we're comfortable accepting this
responsibility based on the extensive
customer data and insights that we have
gleaned over the past 25 years. This data
helps us build predictive models, as shown
in the illustration on the left. In this example,
hardware acquisition represents less than
25 percent of the total cost of ownership,
while repairs, support, maintenance, and
supplies make up more than 75 percent.1
Brief | Total cost of printing
Unit
price
Pages
Cost/
page
$120/
9,600 =
$0.0125
Maintenance kit
$302/
160,000 =
$0.0019
Maintenance labor
$320/
160,000 =
$0.0020
Parts
$105/
50,000 =
$0.0021
Labor
$118/
50,000 =
$0.0024
Toner handling
$8/
9,600 =
$0.0008
Invoicing
$10/
12,500 =
$0.0008
IT/help desk
$7/
2,700 =
$0.0026
Toner costs
Maintenance costs
Repair costs
Total hard costs: $0.0209
Related costs
Total related costs: $0.0042
Total costs (hard + related)
$0.0251
MPS per-page cost
$0.0194
Hard cost savings: 7%
Estimated total savings: 23%
Breakdown of printing costs
Cost breakdown
To carry this illustration further, a cost-perpage breakdown in the table to the left
leverages data from an HP LaserJet printer
in the 4000 series and uses customer data
on toner, maintenance and repair costs to
document the hard costs of supporting this
device. We also used historical customer data
to calculate the time required to perform
related support tasks, such as supplies
inventory management (“Toner handling”),
processing of a an invoice from a vendor
(“Invoicing”) and IT help desk support to
exchange a toner cartridge or to alleviate
a paper jam (“IT/help desk”). The unit costs
provided in this example result from an
applied algorithm to determine the amount
of time and the related cost of each of these
tasks as it relates to producing a single printed
page from the device.
In the example provided (left), the Estimated
total savings is a percentage resulting from
applying your costs (actual and related costs)
to the cost per page we would charge to
provide MPS for this device. Independent
analyst research suggests a savings of up to
30 percent on internal printing costs could be
expected when deploying MPS.2 The example
in the table shows that a 23 percent overall
savings would be delivered under an MPS
contract. This type of data is similar to
what we can provide your organization
in an MPS proposal.
2
IDC MarketScape: Worldwide Managed
Print and Document Services 2014 Vendor
Assessment – Focus on Managed Workflow
Services, September 2014, ID #250631.
Gartner, “Magic Quadrant for Managed
Print and Content Services, Worldwide,”
November 6, 2014, ID Number G00260810.
Gartner does not endorse any vendor, product
or service depicted in its research publications,
and does not advise technology users to select
only those vendors with the highest ratings or
other designation. Gartner research publications
consist of the opinions of Gartner’s research
organization and should not be construed
as statements of fact. Gartner disclaims all
warranties, expressed or implied, with
respect to this research, including any
warranties of merchantability or fitness
for a particular purpose.
Sign up for updates
hp.com/go/getupdated
Why we need your actual
costs
Our ability to provide your organization with
an accurate representation of your total cost
of printing is dependent on understanding
your actual costs for purchased supplies
and break-fix services over the past several
months. You will be asked to provide these
actual costs during the discovery period as
we work together to better manage your print
environment. Doing so will better enable us to
pinpoint an accurate percentage of potential
savings once you initiate MPS services.
Industry standards can be used to support
the process; however, our experience has
Share with colleagues
shown that organizations are more interested
in seeing calculations based on actual costs
rather than those based on industry standards.
Pay-for-print MPS business
model
MPS is most cost-effective when organizations
pay only for the pages they print. Many copier
service providers will establish a minimum
page volume for a device each month, which
ensures the MPS provider of a consistent
payment for services.
While this approach is understandable, often
the minimum page volume is established
at a higher volume than the organization is
currently printing, causing an inflated cost
per page when the customer prints less
than this minimum. A similar but opposite
pricing penalty is often applied to a contract,
establishing a maximum page volume with
overage charges. Some organizations
experience both of these penalties. In the
MPS business model, our customers pay only
for the actual pages printed with no minimum
or maximum penalties or surcharges.
In summary
An MPS price estimate, and each cost per
page as determined by engine, includes all
the costs related to producing a printed page.
You pay only for actual pages printed. When
you provide your actual costs for supplies and
services, we can use that data to determine
the potential cost savings possible through
the implementation of MPS. We work hard to
keep print support costs contained while we
accept the associated risks of delivering MPS.
Let us provide you with a unique and valuable
customer experience as we work together
to better manage the costs of general
office printing.
Learn more at
Watch the “HP Partner MPS: the Van
saves the day” video
hp.com/go/mps
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© Copyright 2015 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties
for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be
construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
4AA5-6910ENW, February 2015